3/25/2019

Final Project Report

Introduction to Business Finance

“Business Idea”
Submitted to: Miss Urooj Istaqlal.

Group Members:
 Muhammad Rauf Mughal (9428)
 Arslan Ali Khan (9197)
 Umeed Qamar (9329)
 Hassan Nasim (9512)
 Muhammad Asim Salahuddin (9397)
 Acknowledgement
First of all, thanks to Almighty Allah for bestowing upon us great knowledge and wisdom
and opportunities to improve and show our skills whatever the platform maybe, He always
guided us, showed the right path at the right time and let us show our abilities to the fullest.
We are highly thankful to our family members & friends who helped us a lot in brainstorming
the business ideas then selecting the most prominent & appropriate one & they all guided us
in doing our market research which was really necessary in application of idea.
We highly admire and acknowledge the efforts of our Faculty because it wouldn’t have been
for her, we would’ve never accomplish such difficult task of coming up with a Business Idea.
She helped her throughout the Project by explaining things that we didn’t know, so efficiently
and she guided us a lot about how to gather and what to gather to assemble this report.
We admire and acknowledge the efforts of all our Group Members for working together so
diligently and actually taking interest in doing so. The Group Leader guided the group very
efficiently about the things that we couldn’t do alone, he was always with us whenever we
required any help regarding the project and the members worked so hard to get things done.
Lastly, we thank each and every one who helped us even a little bit in doing what we have
done. The Project wasn’t possible without them helping us and assisting in making of report.
 Table of Contents
Contents
Page#
1. Executive Summary 03
a. Introduction 03
b. Our Vision 03
c. Our Values 03
2. The Business Concept 04
a. Problem Statement 04
b. The Solution 04
c. Universal Selling Proposition 04
3. Competitors 05
a. Eco Services 05
i. About 05
ii. Market Offerings 05
iii. Achievements 05
iv. Competing with The Competitor 06
v. Competitive Advantages 06
vi. Competitive Strategies 06
4. Anticipated Risks 07
a. Customer Property Damage 07
b. Third-party Injuries 07
c. Service Equipment Damage 07
d. Chemical Exposures 07
e. Employee Occupational Injuries 07
5. Risk Minimization 08
a. Training Employees 08
b. Using caution signs 08
c. Storing of Equipment 08
d. Wearing Safety Masks 08
e. Employment Safety Policy 08
6. Start-up Costs 09
7. Start-up Funding 09
8. Business Feasibility 10
9. Assumptions Sheet 11
10. Team Profile 12
11. Conclusion 17
Introduction:
Crystal Cleaning is a service-oriented partnership venture that specializes in all kinds of in-
door cleaning and provides professionals who render satisfying services. Our cleaning
professionals provide services at your doorsteps providing you the ease & comfort you desire.
We specialize in Glass Doors & Windows Cleaning, Floor Cleaning, Water Tank Cleaning,
Renovation, Fumigation, Paint Services, Pest Control, Kitchen Cleaning and Carpet Cleaning
Service. Our skillful staff are the proud of our firm and promises to deliver the memorable
experience to our customers.

Our Vision:
Our vision is to be the leading and most prominent choice when it comes to in-door cleaning.

Our Mission:
Our mission is to build a strong brand image all over Pakistan by generating maximum
customer equity.

Our Values:
 Integrity.
 Performance.
 Customer Satisfaction.
 Service Quality.
 Loyalty.
 Business Concept
Problem Statement:
Through our market research, we figured out problems in the society that Home-Cleaning
really sounds a hazard to people as they can’t keep looking here and there for finding expert
cleaning professionals. Even though people find cleaners but they often don’t provide
satisfying service while also charging desired amount of money. Handicapped people are also
affected by this issue as they crave for neat & clean environment in the home but, they can’t
manage to call out for the cleaners so, this has created a huge gap in the market that needs to
be filled with the right solution.

The Solution:
Crystal Cleaning is the perfect solution to people’s problems related to cleaning. We are
providing all kinds of in-door cleaning services like, Glass Doors & Windows Cleaning,
Floor Cleaning, Water Tank Cleaning, Renovation, Fumigation, Paint Services, Pest Control,
Kitchen Cleaning and Carpet Cleaning Service. Service is provided at your doorsteps
providing you ease and comfort. This is really time-saving for the customers as they won’t
have to wait longer for the service providers go reach their homes.

Unique Selling Proposition:

The very first thing that makes us unique is that we provide our services both, on-ground &
online. On-ground services will be rendered 12-hours a day through our Head Office located
in DHA Phase IV, a luxurious area of Karachi where High and Middle Class People reside.
Our online service will be rendered through online app for Android, iOS, Mac OS &
Windows. Customers and Workers will just need to create their separate Crystal IDs and each
Crystal ID shall be unique for each Customer then, they’ll just have to choose the service
they want to get, then fill-in their location details & submit their request. Our IT
Representative will then proceed the request for further procedures & the required set of
labors will be sent to customer’s provided location ASAP so that Customers won’t have to
keep waiting. Also, Payment Setup is both, On-the-go and Online through IBFT (Internet
Banking Funds Transfer), Jazz Cash, Easy Paisa & UBL Omni. However, each service has
separate charges depending on their difficulty level set by our Top Management in the form
of difficulty stars (5 maximum) in the App. We also have our unique salary policy. We’re
going to pay salaries depending upon the Job difficulty level of our staff determined in the
App and this trend will promote tendency in the staff to do difficult tasks efficiently.
 Competitors
Eco Services

About:
Eco Services is our only competitor in the market. It’s been there for several years and has
been really popular among High Class Customers for its excellent Cleaning and Pest
Management Services and this makes Eco Services, a really tough competitor.

Market Offerings:
Eco Services delivers following services:
 Pest Management.
 Renovation.
 Fumigation.
 Water Tank Cleaning.
 Glass Doors & Windows Cleaning.
 Floor Mopping.
 Kitchen Cleaning.
 Carpet Cleaning.
Among all these services, The Company is mostly known for its Pest Management Services
throughout the whole country.

Achievements:
Eco Services has achieved many milestones in the industry since when it was formed. It has
4+ certifications for its services and over 1500 trusted clients from Karachi.
Competing with The Competitor:

Eco Services is really convenient for the customers but, its expensive at the same time as well
as mostly middle and low class customers can’t afford the services even though they’re in
desperate need for it.
On the other hand, Crystal Cleaning will also be highly convenient and less expensive at the
same time as we are targeting Low, Middle & High Class and going with Mass Market
Strategy because cleaning is the issue for everyone and everyone is willing to avail such
services just because they could stay out of trouble themselves and let us take care of it.

Competitive Advantages:
Crystal Cleaning has following Competitive Advantages over Eco Services:
 Crystal Cleaning accessible through Online App.
 Crystal Cleaning offers good quality services at lower prices.
 Crystal Cleaning also offers Paint services while Eco Services doesn’t.
 Crystal Cleaning renders services 12-hours a day while Eco Services renders services
8-hours a day.
 Crystal Cleaning uses latest Equipment that ensures your property Crystal-Clear.

Competitive Strategies:
Crystal Cleaning is going to have following Competitive Strategies:
 Promotional Discounts at the time of launch.
 Marketing Campaigns to attract maximum no. of audience.
 Need-based advertising for effective Positioning.
 Anticipated Risks
Following 4 kind of risks involve in our Business Idea that may affect the financial
performance and brand image:

Customer Property Damage:

The cleaning process may cause severe damage to customer’s precious property because
workers might accidently break something or cause damage to anything and this can affect
our company’s goodwill really badly.

Third-Party Injuries:
During the cleaning process, it’s also possible that third-party might get injured badly
because of slippery floors or fumes that are dangerous for health and this incident can lift-off
customer’s trust on us and company reputation can be bad in the society.

Service Equipment Damage:

This can also be a major issue in a cleaning business as your equipment always needs to be
100% fit all the times but, uncertainties don’t warn before coming so, our equipment’s
damage while at the service, can be really harmful to our business because customers have a
behavior that they don’t want minor issues in a major task so, we might lose them.

Chemical Exposures:
All the cleaning procedures require chemical inclusion and these chemicals are dangerous for
human health no matter if its consumer or the worker, its harmful for both and if we don’t
anticipate this factor, we might need to shut down for good because health calls for no
compromises and it’s the first concern of any consumer.

Employee Occupational Injuries:

Our employees work in labor-intensive conditions. If they suffer bodily injuries because of
their work, our business is liable for their medical expenses this uncertainty might also
discourage them from working just because health risk involved in the work.
 Risk Minimization
Training Employees:
Our employees should know what protective gear to wear to reduce their exposure to
hazardous fumes. We will be sure to instruct them on proper lifting techniques and equipment
operation. These steps can help them avoid costly work injuries and keep the Workers'
complains to the minimum (fewer injuries = fewer claims = fewer premium hikes).

Using Caution Signs:

Whenever there is a fall hazard (e.g., a freshly mopped or waxed floor), placing a floor-stand
sign at either entrance to the area will surely work for us. That way, passersby have the
opportunity to take an alternate route or tread carefully. Using caution signs will also be
helpful while working with fumes or chemicals so that no one gets injured.

Storing of Equipment:
Storing Cleaning Equipment in a proper fire-proof place can reduce the risk of losing the gear
in a fire. We’ll also be careful when storing certain chemicals. Carefully storing everything
will ensure good cleaning performance and give them a longer life. Our Equipment will also
be maintained properly, their regular check-and-balance and maintenance of the equipment
will ensure high-quality cleaning.

Wearing Safety Masks:

To avoid chemical exposures, our workers shall be instructed to wear proper safety masks so
that the chemicals don’t cause them to faint immediately or don’t cause any illness in the
future as the chemicals are intensely dangerous.

Employment Safety Policy:

Our Employment Safety Policy will ensure no employee gets hurt during the working as they
will be provided with proper safety gear and their health will be insured, we will provide all
kinds of medication facilities to our employees so that they retain with us for long because
employees build an organization and if employees are fit, organization will also be fit.
 Start-up Costs
Particulars Amount (rs.)

Start-up Expenses
Stationery 2,000
Marketing Expenses 3,00000
Insurance Expense 2,0000
Labor Uniforms 2,0000
Maintenance Expense 5,000
Other Expenses 10,000
Total Start-up Expenses 3,57,000

Start-up Assets
Cleaning Equipment 20,00,000
Office Furniture 100,000
Communication Equipment 30,000
Computer Equipment 60,000
Cleaning Supplies 40,000
Land & Building 70,00,000
Total Assets 92,30,000

Total Requirement 95,87,000

Start-up Fundings
Particulars Amount (rs.)
Planned Investment
Partner 1 20,00,000
Partner 2 20,00,000
Partner 3 20,00,000
Partner 4 20,00,000
Partner 5 20,00,000
Total Planned Investment 100,00,000

Start-up Funding Required

Start-up Expenses to Fund (357000)
Start-up Assets to Fund (92,30,000)
Total Funding Required (95,87,000)

Balance 4,13,000
2020 (rs.) 2021 (rs.) 2022 (rs.) 2023 (rs.) 2024 (rs.)
Sales 800,000 880,000 960,000 1,040,000 1,120,000

Cost of Sales (300,000) (330,000) (360,000) (390,000) (420,000)

Gross Profit 500,000 550,000 600,000 650,000 700,000

Gross Profit % 62.5% 62.5% 62.5% 62.5% 62.5%

Operating Expenses

Transportation Expense 10,000 10,500 11,000 11,500 12,000

Advertising Expense 30,000 40,000 50,000 60,000 70,000

Depreciation 15,000 20,000 25,000 30,000 35,000

Maintenance Expense 5,000 5,000 5,000 5,000 5,000

Insurance Expense 8,000 8,000 8,000 8,000 8000

Utilities Expense 50,000 55,000 60,000 65,000 70,000
Salary Expense 70,000 70,000 70,000 70,000 70,000
Misc. Expenses 25,000 25,000 25,000 25,000 25,000
Total Operating Expenses (213,000) (2,43,500) (274,000) (2,74,500) (295,000)

EBIT 287,000 3,06,500 326,000 3,75,500 405,000

Taxes Incurred (25,000) (25,000) (25,000) (25000) (25000)

Net Profit 262,000 2,81,500 301,000 3,50,500 380,000

Net Profit/Sales 33% 32% 31% 34% 34%

Income Statement

Assumptions Sheet
 Accounting Heads Growth Assumed (%) Value Addition
Sales 10% 80000
COGS 10% -30000
Gross Profit 10% 50000
Transportation Expense 5% 500
Advertising Expense 33% 9999.9
Depreciation Expense 33% 4999.95
Utilities Expense 10% 5000
EBIT 7% 19499.641
Net Profit 7% 19499.612

Notes to Assumptions Sheet:

 Sales is expected to grow at a constant rate of 10% for the next 3 years
because the idea is a kind of entrepreneurial and many customers will be willing to
benefit from it..

 COGS is assumed to be increasing constantly by 10% because more services

delivered carries more the cost over it.

 Gross Profit is also expected to constantly grow by 10% because the idea is
really effective and more customers will be getting attached with the brand.

 Transportation Expense is assumed to increase constantly by 5% because of

increasing fuel prices.

 Advertising Expense is expected to grow drastically by 33% because the

company is going to do heavy marketing of their services through many promotional
activities.

 Depreciation Expense is assumed to be increasing by 33% as well because

heavy equipment depreciates quickly and upgradation is needed by then.

 Utilities Expense is assumed to be increasing by 10% because of changes in

variable costs like billings.
  EBIT is assumed to increase by 7% constantly throughout upcoming 3 years
because of constant increase in gross profit.

 Net Profit is also assumed to increase constantly by 7% throughout upcoming

3 years because of constant increase in Sales.

Team Profile

Arslan

About:
Arslan Ali is MS-Aviation Management qualified and specializes in finance & accounts. He
is a highly competent guy when it comes to finance and accounts. He’s always committed to
the work performed and can work excellently in any environment. He truly is a guy to go-to
for quantitative tasks. He represents significant importance for the company.

Skills & Abilities:

 Good Communication Skills.
 Good team skills.
 Able to work well in any environment.
 A good multi-tasker.
 Good in Finance & Accounts.
 Specializes in Quantitative Skills.

Venture Compatibility:
Arslan Ali is compatible due to following reasons:
  Venture requires skilled accountants.
 Venture requires good teamwork.
 Venture depends upon rational decision-making.
 Venture suits guys with a will to out-perform.

Muhammad Rauf Mughal.

About:
Muhammad Rauf Mughal is a MBA in Marketing qualified and specializes in Management.
He is a multi-talented professional, founder & CEO of Crystal Cleaning. He’s good in finding
out solutions to every problem whether it’s creative or rational. He is always highly-
motivated personnel and has high hopes for his idea’s future growth.

Skills & Abilities:

 Excellent Communication Skills.
 A Good Negotiator.
 Excellent Management Skills.
 Creativity.
 Diversified Thinking Ability.
 Skilled in MS-Office.
 Fluent in English.

Venture Compatibility:
Muhammad Rauf Mughal is compatible due to following reasons:

 Venture demands creativity.

  Venture is problem-oriented.
 Venture can be easily capitalized through profits.
 Venture is Unique to it’s Target Market.
 Things need to be managed well.
 Risks are needed to be properly assessed.

Hassan Nasim.

About:
Hasssan Nasim is MBA in HR qualified and specializes in HR Activities. He’s a smart
brainer when it comes to managing employees. He knows how to deal with employees having
any kind of behavior and attitude. He’s good in getting the work done by his team. He’s a
truly trustable personnel when it comes to HR tasks like hiring, managing or firing workers.

Skills & Abilities:

 Good Communication Skills.
 A good negotiator.
 Fluent in English.
 Good in MS-Office.
 Able to tackle tough situations.
 A Problem-solver in case of Employees.

Venture Compatibility:
Hassan Nasim is compatible due to following reasons:

 Venture requires skilled employees.

 Venture is customer-sensitive.
  Venture requires good employee management.
 Venture highly depends upon employee performance.
 Venture demands strong HR Department.

Asim Salahuddin.

About:
Asim Salahuddin is MBA in Marketing qualified and specializes in marketing activities. He
is a really smart guy when marketing a cause. He knows when to run which marketing
activity and how to grab customer’s attention to the maximum. He can be a great asset to the
venture because initially, we require heavy marketing of our idea.

Skills & Abilities:

 Excellent Communication Skills.
 Excellent Negotiation Skills.
 A great CSR Activist.
 Skilled in MS-Office.
 Good in English.
 Possesses good presentation skills.

Venture Compatibility:
Asim Salahuddin is compatible due to following reasons:

 Venture requires heavy initial marketing.

 Venture requires good marketing strategies.
  Venture requires maximum customers to be satisfied.
 Venture demands high brand & customer equity in order to sustain.
 Venture requires good competitive strategies.
 Venture requires highly-skilled staff for good service delivery.

Umeed

About:
Umeed Qamar is MBA in IT qualified and specializes in Computing & Networking. He is a
huge asset for the firm because the idea is to also serve online and through his good IT Skills,
we can make it happen and that would also give us an edge over our competitors. He can
operate the business online and make sure no stone is left un-turned in doing so.

Skills & Abilities:

 Skilled in Networking.
 A great web designer.
 Skilled in MS-Office.
 Skilled in Software Operations & Development.
 Able to tackle tough situations with ease.
 Skilled performer in any working environment.
 Fluent in English.

Venture Compatibility:
Umeed Qamar is compatible due to following reasons:
  Venture requires operations online.
 Venture requires highly responding team online.
 Venture requires good reception management.
 Venture requires good network management.
 Venture requires a team of skilled IT Professionals.

Conclusion
It is concluded that Karachi City is the business hub of Pakistan where many businesses
flourish even with high competition in their respective industry. In this modern business age,
it’s really hard to grab customer’s attention and get money out of their pockets due to many
options available and each one better than the other. So, to avoid such hazards, We have
opted problem-oriented approach for making our service business generate high revenues and
we have addressed major problem of customers, then solved it with our unique idea. We are,
therefore, hopeful for good outcomes. We have high hopes of generating good profits upon
providing excellent cleaning services to our customers. We are selling benefits rather than
features in our services. Our Management Team is highly dedicated towards the business and
is also hustling in gathering a skilled staff to ensure a satisfactory experience to our
customers. We believe that if investors invest in our idea, they can also be highly profitable
as the time goes by because we only have one competitor and we are ahead of it as well and
also because we plan on expanding the business all over Pakistan when it will be feasible.

In a nutshell, Cleaning Service Business is a kind of Business that can be successful if valiant
efforts are put into it, if your employees are highly skilled and if customers are happy with it.

**********************************THE END******************************